Millions of families across the United Kingdom are set to receive a welcome increase in their financial support next year, after HM Revenue and Customs (HMRC) and the Labour Party government confirmed the annual uprating of key benefits.
New Payment Rates Confirmed for 2026
The increases for both Child Benefit and Guardian's Allowance will be linked to the Consumer Price Index (CPI) for the year to September 2025, which was recorded at 3.8 per cent. This adjustment will come into effect from April 2026.
Under the new rates, the weekly Child Benefit payment for the eldest or only child will rise from £26.05 to £27.05. For any subsequent children, the rate will increase from £17.25 to £17.90 per week.
The weekly Guardian's Allowance, which supports those caring for children whose parents have died, will also see a boost, moving from £22.10 to £22.95.
As these payments are typically made every four weeks, the new amounts translate to a four-weekly payment of £108.20 for the eldest child, £71.60 for other children, and £91.80 for Guardian's Allowance.
Maximising Support with Tax-Free Childcare
Alongside the benefit increases, HMRC is urging eligible working families to explore the Tax-Free Childcare scheme, especially with the costly school holidays in mind. This government-backed initiative can provide significant savings on approved childcare costs.
For every £8 a parent pays into their online Tax-Free Childcare account, the government adds an extra £2. This top-up can amount to as much as £2,000 per year for each child under 11, or £4,000 per year for a disabled child under 17.
The scheme is designed to be flexible. Funds can be used to pay for a wide range of registered childcare, including:
- Nurseries and childminders for younger children.
- Before and after-school clubs during term time.
- Holiday clubs during the summer and other school breaks.
Money can be deposited and used immediately or saved in the account for future needs. Any unused funds can be withdrawn by the parent at any time.
How to Apply for Extra Help
Applying for a Tax-Free Childcare account is a straightforward online process. HMRC states it takes around 20 minutes to complete an application. Once approved, the account is active and ready to use.
This dual announcement of increased benefit rates and a reminder of available childcare support offers a tangible financial boost for households managing the rising cost of living and childcare expenses.
